Texas Public Policy Foundation
Texas Insider Report: AUSTIN, Texas – What to Know: American Prospect magazine is warning that the GOP tax plan “pulls the plug on renewable energy.”
“The GOP tax reform plan barreling toward a vote in the Senate could deal a devastating blow to the renewable energy industry,” the magazine contends. “Unlike the more draconian House version, the Senate bill does not slash renewable tax credits directly, but it does impose steep taxes on the companies that help finance renewable development.”
Note the language: “impose steep taxes.” Later, the article more accurately explains that the House bill “proposed cutting the Production Tax Credit (PTC) for renewables by a third, eliminating the Investment Tax Credit for solar production, and repealing the electric vehicle purchase credit.”
The TPPF Take: Eliminating tax breaks and subsidies isn’t the same thing as imposing steep taxes. It merely levels the playing field.
“Wind and solar tax breaks and subsidies distort the market and negatively impact consumers,” says TPPF’s Bill Peacock. “For less expensive, more reliable electricity, we must eliminate those subsidies and require renewable energy companies to compete on the open market with other forms of energy.”
Read more about why eliminating renewable energy subsidies is key to increasing prosperity here.